In January-September 2016, the
national rail carrier of Uzbekistan transported 50.5 million tons of cargo and
15.8 million passengers. The company rendered export services for $275.7
million, which is 5.2% increase YOY, and produced goods for 312.8 billion soums
(currency rates of CB RU from 07.11.2016, 1$= 3102.18 soums). Uzbekistan
Railways contributed to the execution of the employment program with the
delivery of over two thousand new jobs.

The company has disbursed more than $673.6 million under the investment
program for 2016. The commissioning of the electrified railway line Angren-Pap
with the tunnel through the Kamchik Pass has allowed to connect the Fergana
Valley with other regions of the country by rail. The launch of the tunnel,
which ranks the world’s eighth in terms of construction complexity and 13th in
length, as well as the CIS’s first in these indicators, has played a crucial
role for the further development of Uzbekistan's economy.

A passenger train from Tashkent to Andijan started running on the eve of
the 25th anniversary of the country’s independence. Currently, modern
high-speed trains run on the route Tashkent-Andijan-Tashkent twice a day, and a
passenger train Andijan-Bukhara-Andijan runs twice a week. 17 trains transport
cargo through the new railway line every day.

“The launch of high-speed electric train Afrosiyob on the route
Tashkent-Bukhara-Tashkent is our biggest progress this year,” said the
O’zbekiston Temir Yollari (Uzbekistan Railways) General Manager, Chief Engineer
Husniddin Hosilov. “The opportunity to quickly get to Samarkand, Karshi and
Bukhara by high-speed trains will promote tourism and provide population with
quality services. The launch of the routes has increased railway capacity by
36%, decreasing operating costs by the same percentage, and creating more than
200 new jobs.”

Current economic conditions pose new
challenges to developing countries. The global economy has made the world open
to goods from any country, with quality and efficiency as criteria for passing.

Uzbekistan has been actively promoting its products in foreign markets,
using unique mechanisms of co-operation of production facilities with flagship
foreign partners. Dozens thousands of participants and visitors of the Tenth
International Industrial Fair and Cooperation Exchange have made sure in the
success of this process.

Competition has been the most important indicator of success of economic
model in any country, as it ensures a steady progress of production industries
and release of goods at the level of international standards. For Uzbekistan,
where monopoly was established in virtually all sectors in the 90es of the last
century, it was vital to create all conditions for the development of private
business. To do that, the country triggered de-monopolization and privatization
processes at state-owned enterprises, which have resulted in a significant
increase in the number of companies that operate and compete with each other in
the market. Besides, de-monopolization has ‘opened’ the market, built and
developed the competitive environment, which has ensured effective use of
resources, improved quality of products, works and services, and fair market
prices.

Сooperation has always played a special role in the development of the
domestic market and enhancement of its competitiveness. In order to develop
competition between manufacturers, the government has created conditions that
stimulate foreign investors to invest in the domestic market, as well as
provided domestic manufacturers with certain privileges and preferences in
establishing the production of new goods and components that are not produced
in the country. As a result, cooperation and localization have turned into
drives of the national economy in the short term, retaining the country’s GDP
at the level of no less than 8% over the last 15 years.

Today, the major strategic task comes to optimal consolidation of
cooperation ties that would help enhance the production of competitive goods,
promote efficient and rational use of foreign exchange reserves, bolster
stability on the domestic market, and boost the growth of small businesses in
the manufacturing sector. All this together would allow the economy to develop
and grow, providing the population, on the one hand, with high-quality low-cost
domestic products, and on the other, increasing purchasing capacity and
incomes.

It stands to reason that for a decade Uzbekistan has been holding the
largest exposition event in the industrial sector – the International
Industrial Fair and Cooperation Exchange (IIFCE). It is one of the main
mechanisms for stimulating the real sector for projects on modernization, cost
reduction and optimization of production through the introduction of innovative
technologies and up-to-date equipment.

With the foundation of IIFCE, enterprises of Uzbekistan have received an
opportunity to not just present their products nationwide, but also learn about
technical innovations and new products, achievements of related industries and
businesses, and identify the needs in materials and components for short term.
It is a good opportunity to find a reliable long-term partner, sign contracts
and develop a portfolio of orders for the supply of own production for the year
to come.

The effectiveness of the event, which largely reflects the positive
outcomes of ongoing economic reforms, has been growing year by year. That is
why the number of regional and sectoral trade fairs has been expanding in
quality and quantity, as well as the number of contracts, including export
ones.

Over the past decade, the range of exhibited products has exceeded
20,000, the number of participants has increased seven-fold, contracts
concluded – by 11 times. In 2015, IIFCE was attended by representatives of more
than 1,300 companies from 55 countries. The contracts signed were valued at
$8.3 billion.

IIFCE-2016 presented over 2,500 enterprises, companies, organizations
and small businesses of Uzbekistan with their products, and more than 1,300
foreign participants. They demonstrated more than 24,000 kinds of finished
products, components and materials of mechanical engineering, automotive,
electrical, construction, metallurgy, chemical, oil and gas, food and light
industries, pharmaceuticals.

This year, the territorial industrial fairs started in the second half
of March and continued until June 14 in regions of the country as the first
stage of the event. At the same time held in Tashkent branch industrial fair in
which small and large businesses had the opportunity to present their products
and familiarize with the technical innovations of production, achievements
related industries and businesses, to identify the needs for the near future in
the produced materials and components. Upon completion of regional events,
participants concluded agreements on the development of new types of industrial
products.

Industrial expositions were held concurrently in Tashkent: small and
large businesses had the opportunity to present their products and learn about
innovations in production engineering, achievements of related industries and
businesses, identify the needs in materials and components for the near future.
Upon completion of regional events, participants concluded agreements on the
development of new types of industrial products.

At the second stage, the International Industrial Fair and Cooperation
Exchange, those contracts were transformed into supply agreements, as part of
portfolio of orders for next year. Between the two stages, enterprises worked
on production of new types of products and pilot batches, as well as reconciled
technical specifications with customers and brought them to the required
quality.

The economy of Uzbekistan possesses high capacity for further expansion
of cooperation ties between small businesses and industrial companies. There is
a simple proof: the volume of import-substituting production has grown 220
times owing to the localization programs that have been implemented since 2000.

At the International Industrial Fair and Cooperation Exchange – 2015,
the Uzbek side signed contracts for 2016 for the development of production and
delivery of previously imported products for 2.1 trillion soums (currency rates of CB RU from 07.11.2016, 1$=
3102.18 soums). That has allowed reducing imports by $637.5 million in the
leading sectors of the economy in the current year.

IIFCE participants see the program of localization as an important
contribution in increasing exports, expanding the map of deliveries, and increasing
the share of high value-added products. In the first nine months of the current
year alone, domestic enterprises manufactured localized products for more than
4 trillion soums with 1.5 times increase YOY, the estimated effect of import
has exceeded $1.3 billion.

Uzbekneftegaz National Holding Company ranks among the most active
participants of the event. Its incorporated companies signed more than 800
contracts for procurement of import-substituting products and provision of
production services for over 1.8 trillion soums, which is 30% more YOY.

The 70 square meters joint stand of Uzbekneftegaz exhibited products of
six joint stock companies, joint ventures, as well as representatives of small
business and private entrepreneurship. Its representatives held negotiations
with foreign partners and signed direct export contracts for about $400
million. At last year’s Nineth International Industrial Fair and Cooperation
Exchange, the company concluded 15 export contracts, agreements and contract
intentions, seven of which envisaged the supply of finished engineering
products.

The stand of the national airline of Uzbekistan was crowded. Uzbekistan
Airways Technics (UAT), Uzaviatekhsnab, Uzaeronavigatsiya Center and the
Specialized Air Works airline (SAR) presented their services and needs for
supplies and components.

UAT showcased its capacity in maintenance of western-made aircrafts,
repair of their components, including composite materials, painting of all
types and modifications of aircrafts. Uzaeronavigatsiya Center demonstrated
services for air traffic management, technical support for meteorological
equipment, provision of communication and air navigation information for
organizations and foreign missions.

Uzaviatehsnab exhibited the products of domestic manufacturers that are
used by the national airline, as well as the products that are recommended for
the development by local businesses. CAP
air company offered transportation services for tourists, aerovisual surveillance
and photography, the primary flight training of pilots for AN-2, and conduct of
chemical works in agriculture.

Participants were provided with detailed information on passenger and
cargo traffic of the airline, its renewed fleet, the operation of a new plant
for repair of composite elements of aircrafts and cargo terminal at the
international airport Navoi, learned about education and training opportunities
for pilots on Full-Flight-simulators for IL-114 and A320.

At the Ninth International Industrial Fair and Cooperation Exchange, Uzbekistan
Airways signed more than 117 cooperation agreements, while this year the
representatives of the airline signed contracts with more than 125 local and
foreign companies and manufacturers.

Incorporating 400 well-equipped textile, sewing and knitting
enterprises, O'zbekyengilsanoat Company is another active participant of IIFCE.
It has the opportunity to export a wide range of products, from yarn to
finished products. Modern design and high quality features increase the
attractiveness and competitiveness of its products, allowing occuping a decent
place in the international market.

One of the key missions of O'zbekyengilsanoat at the present stage comes
to strengthening of international cooperation and involvement of foreign
partners in further modernization, technical and technological renovation of
production, widespread promotion of domestic products to international markets,
implementation of innovative projects to raise the light industry of Uzbekistan
to a drastically new level. The International Industrial Fair and Cooperation
Exchange – 2016 will undoubtedly contribute to the implementation of
large-scale projects as a platform for the world's flagship manufacturers to
develop mutually beneficial relations with Uzbekistan.

According to experts, the development of cooperative ties will be a
powerful factor for the stable operation of enterprises and branches of
Uzbekistan's economy, job creation, employment and income growth in the next
few years. Hence, the role of the International Industrial Fair and Cooperation
Exchange will keep growing, especially in terms of involvement of private
entrepreneurs in the cooperative process. Today, the state provides technical
and advisory support on the participation in the event to many small
businesses, helping them to deliver their products from the regions, organizing
meetings with credit and leasing organizations, representatives of major
industrial giants.

A more effective cooperation with major industrial giants is a chance
for small businesses to expand production and product range, apply innovations
and improve product quality. That will ultimately contribute to the dynamic
development of the domestic industry, catalyze modernization processes and,
most importantly, raise incomes and welfare of the population of Uzbekistan.

This is just a small part of the
program of the First International Festival of Arts ‘Golden Autumn’, organized
by the Ministry of Cultural Affairs and Sports.

The festival opened on October 28 with a concert by the National
Symphony Orchestra in the State Conservatoire of Uzbekistan. It was soloed by
young talents Ilva Vera Eigus, Aurora Gexter, Karlis Bukovskis from
Switzerland, France and Latvia, respectively. On the same day, the known
pianist, head of the Department of Jazeps Vitols Latvian Academy of Music,
Professor Juris Kalnciems delivered a master class. The next evening was
dedicated to the works of Uzbekistan’s celebrated composer Felix
Yanov-Yanovsky. Famed works of the intricate author were performed by the
Turkiston Chamber Orchestra led by conductor, honored art worker Eldar Azimov.

As part of the festival, several Tashkent theaters will tour around the
regions, including Karakalpakstan. Dutar and Makom ensembles will perform at
the Turkiston Palace, and folklore-ethnographic bands will perform in the
regional centers.

A concert of the renowned Italian artist Toto Cutugno and the eminent
Italian opera singer Alessandro Safina with the National Symphony Orchestra at
the Palace of International Forums ‘Uzbekistan’ promises to be in the spotlight
of the cultural life of the nation.

Classical music concerts took the bulk of the festival’s program. Deputy
Director General for Creative Issues of the National Association of Symphonic,
Chamber, Folk and Instrumental Orchestras Pavel Batskikh shared with his
anticipations:

“The idea of the festival is to introduce and enlighten the people,
primarily the younger generation, to the national culture and universal values,
folk and ethnic music. It will broadly cover the instrumental performance and
world classical music.

The festival is not limited by
metropolitan stages. For example, on November, 5, the orchestra ‘Soloists of
Uzbekistan’ will give a concert in Ferghana. All the teams of the Associations
will be involved in touring. We will try to attract the invited guests to enjoy
their music along with the Tashkent audience.”

The festival will involve the conductor Vladimir Gorbik, the pianist and
composer Vladimir Sverdlov-Ashkenazi and violinist Igor Kalnin of Russia,
pianists Yuri Gandelsman from Israel and Rochelle Sennett from the United
States. The list of guests is currently updated. It is expected that the
festival will be visited by two renowned choirs and a folk orchestra from
Russia.

In addition to the scheduled concerts, the agenda includes
master-classes of foreign and local performers, conductors. This is one of the
most important aspects of the festival, which aims at not just pleasing
amateurs of art, but also at providing the musicians with the opportunity to
share their experiences.

Preparations for the festival have begun in spring. There are many
highlights ahead. But it is obvious that the festival will become an annual
event, the number of participants of which will grow with the years.